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President Donald Trump said he plans to stay out of Netflix and Paramount’s Skydance battle over Warner Bros. Discovery, a departure from comments he made late last year suggesting he could personally weigh in on a deal to reshape the media landscape.
“I was not involved,” “NBC Nightly News” anchor Tom Llamas said in an exclusive interview Wednesday. “I have to say, I guess I’m considered a very strong president. I’ve been called by both sides. It’s both sides, but I’ve decided I shouldn’t be involved. The Justice Department will handle it.”
Pressed on conflicting arguments surrounding the deal, Trump acknowledged the existence of a deep divide between the bidders.
“There’s a theory that one of the companies is too big and shouldn’t be allowed to do this, and the other company says something else,” he said. “They are fighting against each other – and there will be a winner.”
Tune in for an extended version of Tom Llamas’ interview with President Donald Trump on NBC News NOW’s “Top Story” at 7 p.m. ET and even more on Super Bowl Sunday on NBC.
In December, Netflix announced a $72 billion deal to acquire film studio Warner Bros. Discovery, as well as HBO and the HBO Max streaming service. Paramount Skydance has launched a competing offering for the entire company, including its cable networks.
Paramount Skydance is run by David Ellison, the son of Larry Ellison, the billionaire co-founder of Oracle and prominent Trump supporter. THE Ellisons are the majority shareholders from Paramount. Trump maintained a close relationship with the elder Ellisona dynamic that has drawn attention as the bidding war over Warner Bros. Discovery has intensified.
After Warner Bros. Discovery rejected Paramount’s offers in favor of Netflix’s proposal, the Ellison-led company escalated its efforts into a hostile takeover attempt, prompting Netflix to change its offer to an all-cash offer widely seen as a move to fend off competing interests.
In December, Trump publicly questioned whether a deal between Netflix and Warner Bros. Discovery would be approved, citing concerns about market concentration.
“They have a very large market share,” Trump said in December. “When they have Warner Bros., that share goes up a lot.” He added that he would consult economists and said: “I will be involved in this decision. »
Trump’s decision to withdraw could be seen as favorable to Netflix, which already has a deal in place. It also comes against the backdrop of his past public criticism of major media companies, including repeated attacks on Warner-owned CNN and calls for the network to change ownership — even though CNN is not included in the proposed Netflix acquisition.
Shareholders of Warner Bros. Discovery could vote on the Netflix acquisition project as early as March, according to CNBCalthough any deal would still require approval from the Justice Department’s antitrust division and foreign regulators, including the European Commission.
Historically, presidents have rarely intervened directly in antitrust approvals, although Trump has shown a greater willingness than most to comment publicly on major corporate deals, including the proposed Netflix-Warner Bros. transaction. Discovery and acquisition of US Steel by Nippon Steel.
Trump’s financial interests in two of these companies have also been highlighted.
Trump revealed in January that he purchased up to $2 million in Netflix and Warner Bros. bonds. Discovery in the days after Netflix announced the deal, according to a financial disclosure form released by the White House. The filing noted several bond purchases linked to Netflix and Warner in mid-December; the exact amounts were given in ranges rather than precise figures.
The White House has previously said there are no conflicts of interest between Trump’s role as president and his personal investments and businesses. Trump has not commented publicly on the merger-related bond purchases.
Furthermore, the Netflix acquisition project came up against increasing surveillance at the Capitol this week. On Tuesday, Netflix co-CEO Ted Sarandos testified before the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, saying the deal would expand competition rather than reduce it.
Sarandos said the transaction was “not a typical media merger” and rejected claims that it would limit consumer choice or lead to widespread job losses.
Lawmakers from both parties have lobbied Sarandos, but for different reasons. Democrats raised concerns about consolidation and labor impacts, while several Republican senators criticized Netflix for what they described as politically biased or “extremely woke” content.
Sarandos told lawmakers that Netflix has “no political agenda” and offers programming “for everyone, left, right and center.”
Allie Canal is a business reporter for NBC News.